Retirement investments that will last through the golden years are any potential investor’s dream. Who wouldn’t want a passive and guaranteed source of income during these years, and what better way to go?
For a truly peaceful time, it is very important to choose your choices wisely. The more robust your portfolio, the higher the returns and the better the chances of having a guaranteed revenue stream during these years. While volumes of books have been written on the topic of best choices, we cover a few basics for your perusal:
Annuity. An annuity is the very well-recognized in the class of what you are looking for. Basically, an annuity is a contract with the insurance company, wherein you pay a fixed sum of money in the present in exchange for the insurance company’s assurance that she will pay you a fixed sum every month for the rest of your life after retirement. While annuities are potent retirement investments, their validity is only as strong as the company offering the annuity. The better the company’s reputation and track record, the more likely is the annuity is to live on its promise.
Bonds. Either government or corporate bonds are considered to generate income for the duration agreed upon. Basically, a bond is a loan that you offer to the entity issuing the bond in exchange for an interest payment. While government bonds are considered secure choices, corporate bonds are rated and witness much fluctuation depending on the company itself.
Portfolio. If you are a savvy investor, your own comprehensive portfolio of stocks, bonds, and other investments could be solid retirement investments. Creating true income from such a portfolio, however, does take a lot of investment knowhow, way above what an average investor may be capable of performing.
Real estate. Investing in a property when you are young could be a very powerful way to create a retirement investment, especially if the property is a growth-driven proposition. Over many years, real estate could appreciate to provide you with true retirement income, either in the form of rental income or capital gains.
Cash is king. In addition to the aforementioned retirement investments, do consider incorporating savings accounts, CDs, money market accounts, and other liquid forms of investment. The relative security offered by these instruments could ensure a powerful and reliable source of income as part of retirement investments strategy.
In addition to these forms of investing, your retirement investments could also include pension funds, 401 (k), closed-ended funds, dividend income funds, REIT’s/Real Estate Investment Trusts, retirement income funds, and other retirement investments.
Disclaimer: This article is not intended as investment advice. You must check with a qualified professional before making any investment decision.